TaxTMI 
TaxTMI 
Deduction in respect of donations to certain funds, charitable institutions, etc.
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....] 21[or in clause (d)] thereof, an amount equal to the whole of the sum or, as the case may be, sums of such nature plus fifty per cent of the balance of such aggregate; and] (ii) in any other case, an amount equal to fifty per cent of the aggregate of the sums specified in sub-section (2).] (2) The sums referred to in sub-section (1) shall be the following, namely :- (a) any sums paid by the assessee in the previous year as donations to- (i) the National Defence Fund set up by the Central Government; or (ii) 104[****] (iii) the Prime Minister's Drought Relief Fund; or 22[(iiia) the Prime Minister's National Relief Fund; 95[or the Prime Minister's Citizen Assistance and Relief in Emergency Situations Fund (PM CARES FUND)] or] 23[(iiiaa) the Prime Minister's Armenia Earthquake Relief Fund; or] 24[(iiiab) the Africa (Public Contributions - India) Fund; or] 25[(iiib) the National Children's Fund; or] (iiic)-(iiid) 104[****] 28[(iiie) the National Foundation for Communal Harmony; or] 29[(iiif) a University or any educational institution of national eminence as may be approved by the prescribed authority in this behalf; or] 30[(i....
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....er's Relief Fund or the Lieutenant Governor's Relief Fund in respect of any State or Union territory, as the case may be : Provided that such Fund is- (a) the only Fund of its kind established in the State or the Union territory, as the case may be; (b) under the overall control of the Chief Secretary or the Department of Finance of the State or the Union territory, as the case may be; (c) administered in such manner as may be specified by the State Government or the Lieutenant Governor, as the case may be; or] 37[(iiihg) 110[the National Sports Development Fund set up] by the Central Government; or (iiihh) the National Cultural Fund set up by the Central Government; or] 38[(iiihi) the Fund for Technology Development and Application set up by the Central Government; or] 39[(iiihj) the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities constituted under sub-section (1) of section 3 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999); or] 88[(iiihk) the Swachh Bharat Kosh, set up by the Centra....
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....und to which this section applies for providing relief to the victims of earthquake in Gujarat.] (3) 47[****] 48[(4) Where the aggregate of the sums referred to in sub-clauses (iv), (v), (vi) 49[,(via)] and (vii) of clause (a) and in 50[clauses (b) and (c)] of sub-section (2) exceeds ten per cent of the gross total income (as reduced by any portion thereof on which income-tax is not payable under any provision of this Act and by any amount in respect of which the assessee is entitled to a deduction under any other provision of this Chapter), then the amount in excess of ten per cent of the gross total income shall be ignored for the purpose of computing the aggregate of the sums in respect of which deduction is to be allowed under sub-section (1)]. (5) This section applies to donations to any institution or fund referred to in sub-clause (iv) of clause (a) of sub-section (2), only if it is established in India for a charitable purpose and if it fulfils the following conditions, namely :- 51[(i) where the institution or fund derives any income, such income would not be liable to inclusion in its total income under the provisions of sections 11 and 12 52[****] 53[54[****]] 55[or....
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....urposes of this section and notwithstanding anything contained in the proviso to clause (15) of section 2, be deemed to have been,- (a) established for charitable purposes for the previous year beginning on the 1st day of April, 2008 and ending on the 31st day of March, 2009; and (b) approved under the said clause (vi) for the previous year beginning on the 1st day of April, 2008 and ending on the 31st day of March, 2009.] 97[****] 99[(viii) the institution or fund prepares such statement for such period as may be prescribed and deliver or cause to be delivered to the prescribed income-tax authority or the person authorised by such authority such statement in such form and verified in such manner and setting forth such particulars and within such time as may be prescribed: Provided that the institution or fund may also deliver to the said prescribed authority, a correction statement for rectification of any mistake or to add, delete or update the information furnished in the statement delivered under this sub-section in such form and verified in such manner as may be prescribed; and (ix) the institution or fund furnishes to the donor, a certificate specifying the amo....
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....ty of being heard;] 108[(iii) where the application is made under sub-clause (A) of clause (iv) of the said proviso or the application is made under clause (iv) of the said proviso as it stood immediately before its amendment vide the Finance Act, 2023, pass an order in writing granting it approval provisionally for a period of three years from the assessment year from which the approval is sought;] and send a copy of such order to the institution or fund: 115[Provided also that the order under clause (i) and clause (iii) of the second proviso shall be passed in such form and manner as may be prescribed, before expiry of the period of three months and one month, as the case may be, calculated from the end of the month in which the application was received:] 116[Provided also that the order under sub-clause (b) of clause (ii) of the second proviso shall be passed in such form and manner as may be prescribed, before expiry of the period of six months from the end of the quarter in which the application was received:] Provided also that the approval granted under the second proviso shall apply to an institution or fund, where the application is made under- (a) clause (i) of th....
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....is sub-section has come into force, shall be deemed to be applications made under clause (iv) of the first proviso to sub-section (5) on that date.] (6) 79[****] Explanation 1.-An institution or fund established for the benefit of Scheduled Castes, backward classes, Scheduled Tribes or of women and children shall not be deemed to be an institution or fund expressed to be for the benefit of a religious community or caste within the meaning of clause (iii) of sub-section (5). 73[Explanation 2.-For the removal of doubts, it is hereby declared that a deduction to which the assessee is entitled in respect of any donation made to an institution or fund to which sub-section (5) applies shall not be denied merely on either or both of the following grounds, namely :- 74[(i) that, subsequent to the donation, any part of the income of the institution or fund has become chargeable to tax due to non-compliance with any of the provisions of section 11, 75[section 12 or section 12A]; (ii) that, under clause (c) of sub-section (1) of section 13, the exemption under section 11 76[or section 12] is denied to the institution or fund in relation to any income arising to it from any invest....
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.... (b) in the case of any other assessee, fifty-five per cent, of the aggregate of the sums specified in sub-section (2)." 3. Substituted vide Section 18 of the Finance Act, 1985 w.e.f. 01-04-1986 before it was read as, "(i) in a case where the aggregate of the sums specified in sub-section (2) includes any sum or sums of the nature specified in sub-clause (iiia) or in sub-clause (vii)of clause (a) thereof, an amount equal to the whole of the sum or, as the case may be, sums of such nature plus fifty per cent of the balance of such aggregate; and" 4. Inserted vide Section 2 of the Income-tax (Amendment) Act, 1999 w.e.f. 01-04-2000 5. Restored vide Section 95 of the Direct Tax Laws (Amendment) Act, 1989 w.e.f. 01-04-1989 Earlier, Substituted vide Section 25 of the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 01-04-1989 before it was read as, "sub-clause (iiia) or in" 6. Inserted vide Section 3 of the Income-tax (Amendment) Act, 1989 w.e.f. 24-01-1989 7. Inserted vide Section 26 of the Finance (No. 2) Act, 1991 w.e.f. 01-04-1991 8. I....
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....0F which has as its main object the undertaking of scientific research or carrying out of any rural development programme or any programme of conservation of natural resources or of afforestation of wasteland; or" 29. Inserted vide Section 13 of the Finance Act, 1993 w.e.f. 01-04-1994 30. Inserted vide Section 24 of the Finance Act, 1994 w.e.f. 01-04-1994 31. Inserted vide Section 6 of the Taxation Laws (Amendment) Act, 2001 w.e.f. 03-02-2001 32. Inserted vide Section 16 of the Finance Act, 1995 w.e.f. 01-04-1996 33. Inserted vide Section 26 of the Finance (No. 2) Act, 1996 w.e.f. 01-04-1997 34. Inserted vide Section 2 of the Income-tax (Amendment) Act, 1996 w.e.f. 14-11-1996 35. Inserted vide Section 3 of the Income-tax (Amendment) Act, 1997 w.e.f. 01-04-1997 36. Inserted vide Section 23 of the Finance Act, 1997 w.e.f. 01-04-1998 37. Inserted vide Section 29 of the Finance (No. 2) Act, 1998 w.e.f. 01-04-1999 38. Inserted vide Section 43 of the Finance Act, 1999 w.e.f. 01-04-2000 39. Inserted vide Section 39 of the....
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..... 01-04-1981 49. Inserted vide Section 16 of the Finance Act, 1995 w.e.f. 01-04-1995 50. Substituted vide Section 31 of the Finance Act, 2000 w.e.f. 01-04-2001 before it was read as, "clause (b)" 51. Restored vide Section 95 of the Direct Tax Laws (Amendment) Act, 1989 w.e.f. 01-04-1989 Earlier, Substituted vide Section 25 of the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 01-04-1989 before it was read as, "(i) where the institution or fund derives any income, such income would not be liable to inclusion in its total income under the provisions of sections 11 and 12 or clause (22) or clause (22A) or clause (23) or clause (23AA) or clause (23C) of section 10: Provided that where an institution or fund derives any income, being profits and gains of business, the condition that such income would not be liable to inclusion in its total income under the provisions of section 11 shall not apply in relation to such income, if- (a) the institution or fund maintains separate books of account in respect of such busi....
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....efore it was read as, "three" 64. Inserted vide Section 15 of the Finance (No. 2) Act, 1980 w.e.f. 01-04-1962 65. Inserted vide Section 43 of the Finance Act, 1999 w.e.f. 01-04-2000 66. Inserted vide Section 6 of the Taxation Laws (Amendment) Act, 2001 w.e.f. 03-02-2001 67. Substituted vide Section 30 of the Finance Act, 2002 w.e.f. 03-02-2001 before it was read as, "sub-section" 68. Substituted vide Section 36 of the Finance Act, 2003 w.e.f. 03-02-2001 before it was read as, "2003" Earlier, Substituted vide Section 30 of the Finance Act, 2002 w.e.f. 03-02-2001 before it was read as, "2002" 69. Substituted vide Section 30 of the Finance Act, 2002 w.e.f. 03-02-2001 before it was read as, "(iv) the amount of donation remaining unutilised on the 31st day of March, 2002 is transferred to the Prime Minister's National Relief Fund on or before the 31st day of March, 2002;" 70. Substituted vide Section 36 of the Finance Act, 2003 w.e.f. 03-02-2001 before it was read as, "2003" Earlier, Substitu....
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....relation to any income arising to it from any investment referred to in clause (h) of sub-section (2) of section 13 where the aggregate of the funds invested by it in a concern referred to in the said clause (h) does not exceed five per cent of the capital of that concern." 75. Inserted vide Section 17 of the Finance Act, 1972 w.e.f. 01-04-1973 76. Inserted vide Section 17 of the Finance Act, 1972 w.e.f. 01-04-1973 77. Substituted vide Section 30 of the Finance Act, 2002 w.e.f. 01-04-2003 before it was read as, "Explanation 4.-For the purposes of this section, an association approved by the Central Government for the purposes of clause (23) of section 10 shall also be deemed to be an institution, and every association or institution approved by the Central Government for the purposes of the said clause shall be deemed to be an institution established in India for a charitable purpose." Earlier, Inserted vide Section 9 of the Finance Act, 1973 w.e.f. 01-04-1974 And was Amended vide Section 126 of the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 01-04-1989 And was Restored vide Section 95 of the Direct....
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....-06-2020 95. Inserted vide Section 4 of the The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 w.e.f. 01-04-2020 96. Substituted vide Section 4 of the The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 w.e.f. 01-06-2020 before it was read as, "91[approved by the Principal Commissioner or Commissioner;]" 97. Substituted vide Section 4 of the The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 w.e.f. 01-06-2020 before it was read as, "92[(viii) the institution or fund prepares such statement for such period as may be prescribed and deliver or cause to be delivered to the prescribed income-tax authority or the person authorised by such authority such statement in such form and verified in such manner and setting forth such particulars and within such time as may be prescribed: Provided that the institution or fund may also deliver to the said prescribed authority a correction statement for rectification of any mistake or to add, delete or update the information furnished in the statement deliv....
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....lause (iv) of the said proviso, pass an order in writing granting it approval provisionally for a period of three years from the assessment year from which the registration is sought, and send a copy of such order to the institution or fund: Provided also that the order under clause (i), sub-clause (b) of clause (ii) and clause (iii) of the first proviso shall be passed in such form and manner as may be prescribed, before expiry of the period of three months, six months and one month, respectively, calculated from the end of the month in which the application was received: Provided also that the approval granted under the second proviso shall apply to an institution or fund, where the application is made under-- (a) clause (i) of the first proviso, from the assessment year from which approval was earlier granted to such institution or fund; (b) clause (iii) of the first proviso, from the first of the assessment years for which such institution or fund was provisionally approved; (c) in any other case, from the assessment year immediately following the financial year in which such application is made.]" 98. Substituted vide Section 4 of the The Taxatio....
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....ereof was registered at New Delhi on the 21st day of February, 1985; or] 27[(iiid) the Rajiv Gandhi Foundation, the deed of declaration in respect whereof was registered at New Delhi on the 21st day of June, 1991; or]" 105. Substituted vide Section 40 of the Finance Act, 2023 w.e.f. 01-10-2023 before it was read as, "(iv) in any other case, at least one month prior to commencement of the previous year relevant to the assessment year from which the said approval is sought:" 106. Inserted vide Section 40 of the Finance Act, 2023 w.e.f. 01-10-2023 107. Substituted vide Section 40 of the Finance Act, 2023 w.e.f. 01-10-2023 before it was read as, "(B) if he is not so satisfied, pass an order in writing rejecting such application and also cancelling its approval after affording it a reasonable opportunity of being heard;" 108. Substituted vide Section 40 of the Finance Act, 2023 w.e.f. 01-10-2023 before it was read as, "(iii) where the application is made under clause (iv) of the said proviso, pass an order in writing granting it approval provisionally for a period of three years from the assessment year from which the registration is so....